Bitcoin has stagnated over the past few days after peaking at $19,950 at the start of December. It currently trades for $18,200, stuck in a consolidation range between $18,000 and $19,500.
Some have begun to fear a correction due to technical and on-chain trends. As reported by CryptoSlate previously, addresses affiliated with whales have begun to increase their deposits to exchanges. Other analysts have also noted that certain mining pools have begun to sell off holdings.
But, the fundamentals of Bitcoin are seemingly stronger than ever as the world’s governments and central banks continue to opt for money printing to bail out the sinking economy.
Bitcoin bull case still strong amid unprecedented monetary stimulus
Cameron Winklevoss, co-founder of Gemini, recently pointed out that the Bitcoin bull case is being validated as the European Central Bank pushes for further stimulus.
Due to a once-again worsening pandemic and a slower-than-hoped vaccine roll-out, the world’s central banks are taking evasive action to try and prevent the pandemic from affecting the economy even further.
As Winklevoss notes, the ECB in itself is currently pursuing an increase of its “bond-buying program by an equivalent of $2.2 trillion.” $2.2 trillion is approximately 10 percent of the European Union’s aggregate GDP as of last year.
Further, this adds to the more than $1 trillion of stimulus it already implemented earlier this year.
The European Central Bank is increasing its bond-buying program by an equivalent of $2.2 trillion. #bitcoin https://t.co/lBDFGQIvGP
— Cameron Winklevoss (@cameron) December 10, 2020
This is far from a move isolated to the European Union.
Australia, whose economy was famously strong through many recessions due to international investment, has also moved into a negative interest rate territory as it looks to save its economy.
For the first time in history Australia has joined the world of negative interest rates with investors buying $550 million of federal government debt at minus 0.01 per cent.https://t.co/WcangCZGRI
— Ben Rickert (@Ben__Rickert) December 10, 2020
In the U.S., there are reports of an imminent fiscal stimulus bill of approximately $1 trillion, which may include another widespread distribution of cheques to a majority of American families.
Many see these moves as a validation of the Bitcoin bull case as it shows the fickleness of fiat money compared to hard money, such as BTC.
Wall Street taking notice
This push for further monetary stimulus to the tune of trillions of dollars has made Wall Street take notice. Prior to this year, there were actually very few large-name investors and bulge bracket banks involved in the space.
Commenting on the potential for Bitcoin to outperform amid times of mass stimulus, Wall Street investor Paul Tudor Jones said earlier this year that he thinks Bitcoin is going to be the fastest horse in the race.
More recently, Stan Druckenmiller said that he thinks if the “gold bet works” (referencing inflation), Bitcoin will “work even better.”
A growing number of Wall Street investors think BTC will act as a better play than gold as there continues to be a trend of monetary inflation.
Bitcoin, currently ranked #1 by market cap, is down 2.59% over the past 24 hours. BTC has a market cap of $334.42B with a 24 hour volume of $26.29B.
Bitcoin Price Chart
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